Business

Business — 3 Comments
3
Feb 10

Creating Jobs

The Economist is a magazine that goes into great depth about government and economic issues. I was surprised to see Steve Jobs on the cover, rather than Obama, considering both of their recent public presentations.

It got me thinking:

Who has done more to create jobs and improve the economy? Barack Obama or Steve Jobs.

Barack Obama has an $800,000,000,000 stimulus package to hire workers. This creates “work” but it doesn’t create “jobs.” As soon as that money disappears, so do the jobs. Should the government really be worrying about creating jobs, or should they be governing in such a way that they allow entrepreneurs to do the creating?

Steve Jobs has iTunes, Mac computers, the iPhone and the new iPad on his resumé. These products create jobs for the sellers and distributors of these electronics. As a byproduct, they’ve also created an ecosystem of job opportunities behind it. How many people have created their own jobs making iPhone apps? How many independent musicians make a comfortable living selling their songs on iTunes? How many designers are more creative and effective because of what is possible with web apps for the iPhone and iPad?

It’s not the government’s duty to “create” jobs. The taxpaying masses shouldn’t be the ones paying the bill for these few government workers. The government should get its hands out of the pie and let innovators like Steve Jobs do the job creating by making kick ass products that people actually want to buy. The government does a good job of providing a common defense and law enforcement, but it’s horribly inefficient at creating jobs.

Business — 5 Comments
20
Jan 10

Web Apps I Use Daily

In response to @drawar, I thought I’d share a bit about how I work. I plan on being more open in the future, but this is all you get for now.

These are the web apps I use on a daily basis to manage my web design projects and further my design knowledge.

Instapaper

Instapaper is listed first because I do a lot of reading, and much of it isn’t from books. Keeping up to date with web standards requires almost constant reading and Instapaper makes that much easier to manage. Whenever I visit an article I want to read, I click the “Read later” bookmarklet and it goes to my Instapaper account. I’ll read the articles from there in bursts every couple days. Recently, I’ve been reading the articles (and saving notes on them) on my Kindle and Marco’s new Kindle formatting is a life saver. If I had to choose one web app to take with me to a deserted island, it would be Instapaper.

Gmail

I’ve actually gone so far as to completely replace my desktop application with Gmail. When I used Mail, I found myself checking my email too often. Moving to a web app has helped this because typing in “gmail.com” in a new browser tab is enough of a barrier to stop me from checking it obsessively. Three years I’ve been using Gmail and I’ve never once had an “emergency email” (despite the numerous emails with that in the subject). It took that simple step to make me realize that.

Notable

Notable is an app for getting feedback from my clients on designs I do. Instead of using email to try to describe what needs changed, the client can make corrections and leave feedback right on the design. To see it in action, check out ZURB’s CNN redesign.

FreshBooks

FreshBooks handles all my billing and invoicing. I don’t particularly enjoy that part of my business and FreshBooks makes it super easy to put out of my mind. It does its job well and doesn’t take up too much of my brain’s CPU power. Also FreshBooks has the best customer service I’ve ever seen. They gave their blog readers a chance to get a copy of Entrepreneur magazine when they were the cover story. Inside was a Post It note as a thank you handwritten by the CEO of the company. That simple gesture still amazes me to this day.

Those are the four I use every single day. Notoriously absent from this list is Basecamp because I’ve never had a need for it before, despite following what 37signals does for the past five years. Recently, I’ve been using it for bigger projects with more group work. I expect to start using it on personal and client projects soon.

Business — No Comments
24
Oct 09

Why Angels Should Charge Startups To Pitch Their Ideas

Jason Calacanis revealed a “scam” in the startup investment market: some angel investors are charging would-be entrepreneurs to pitch them. How dare they? He disagrees with this practice, but I tend to think what those angels are doing is a good idea.

Why Angels Should Charge Potential Entrepreneurs

  1. Eliminates spam. Not typical email spam, but it is a way to separate out the great ideas from the startups that are using the shotgun approach. If an entrepreneur isn’t willing to fork over $10K to pitch their revolutionary business idea, I would start to doubt how truly revolutionary their idea is.
  2. Allows angels to concentrate on the really great ideas. With all the noise deterred by the entrance fee, the entrepreneurs that are left are going to be the cream of the crop. If an angel firm used to see 100 pitches a month, but now they see 20 and still invest in the same number of startups, wouldn’t that be a good thing?
  3. Idiots get shut down immediately. “Entrepreneurs” who are out to make a quick buck while putting someone else’s money wouldn’t even consider paying to pitch. This represents a small number of startups. The one’s with great ideas are going to succeed regardless of whether they pay to pitch or not, but the idiots are going to have a harder time if their money is on the line.

Luckily, if you disagree with this practice, the solution is easy: don’t pitch the angels that charge you money.

The angels who are charging are not doing this to make more money. $10K is nothing when your net worth is in the double digit millions.1 They are doing this to eliminate the entrepreneurs who don’t truly believe in this product in a subtle subconscious way.

Angels who charge for a pitch are going to have higher quality ideas being presented to them and likely have a higher success rate.

Keep in mind that these startups are asking for million of dollars of an angel’s money for a business that might not work. If you’re successful in raising $10,000,000, what is a $10K investment up front?2 To me, that seems worth it.

What if Craigslist charged $1 for a listing by Seth Godin illustrates this point perfectly although using a different example.

  1. If you have $15,000,000 in the bank, you earn $3,300 in interest every single day at a modest 8% interest. [↩]
  2. Literally speaking, $10K is 0.1% of 10 million. [↩]